Manufacturing Campus with Cold
For Sale
Contact for pricing
1220 E 9 Mile Road, Ferndale, MI 48220
Fully occupied headquarters and production campus supporting refrigerated food manufacturing and distribution operations.
Property Size95,718 SF
Price / SF$73.13
Days on Market63
Property Features for 1220 E 9 Mile Road
General Information
Standard status
Active
Size
95,718 SF
Total Parking Spaces
128
Property subtype
Industrial
Occupancy
100%
Lease Type
NNN
Investment Type
Net Lease
Net Operating Income
$493,016
Additional Details
Cold Storage
Yes
Building Details
Buildings
6
Tenancy
Single
Listing Agency:
Savills
Listed By:
Addison Williams · License #MI 6501406933
Source:
Crexi
Added: Jun 29
Changed: Aug 29
Last Checked: Aug 29 at 1:19PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Savills
Investment Insights
Based on property information with market context.
The property is a 95,718-square-foot manufacturing campus comprising six buildings at 1220 E 9 Mile Road in Ferndale, Michigan. Garden Fresh Gourmet occupies the entire site, which functions as the company’s headquarters and primary manufacturing facility for salsa, hummus, and dips. Most of the campus uses a cold or refrigerated production environment suited to food manufacturing operations.
The property is leased on an NNN basis, with the landlord responsible only for roof and structural repair and replacement. Garden Fresh Gourmet has exercised its first five-year renewal option, and the following option period includes a fair-market-value rent adjustment. The company has operated from this location since its founding in 1997.
The campus is associated with a product line that includes refrigerated salsa, hummus, dips, tortilla chips, and soup, providing a specialized manufacturing setting with an established corporate and operational presence.
The property is leased on an NNN basis, with the landlord responsible only for roof and structural repair and replacement. Garden Fresh Gourmet has exercised its first five-year renewal option, and the following option period includes a fair-market-value rent adjustment. The company has operated from this location since its founding in 1997.
The campus is associated with a product line that includes refrigerated salsa, hummus, dips, tortilla chips, and soup, providing a specialized manufacturing setting with an established corporate and operational presence.
Key Highlights
- 95,718‑square‑foot campus comprising six buildings
- 100% occupied by Garden Fresh Gourmet
- Cold or refrigerated production environment across most of the footprint
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$575,872
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.23%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$11,517,440
$11.5M
Cap Rate 7%
$8,226,743
$8.2M
Cap Rate 9%
$6,398,578
$6.4M
Market Conditions
NOI Build-Up for 95,718 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$703.5K $7.35/SF
− Vacancy
−$26.0K −$0.27/SF
EGI
$677.5K $7.08/SF
− OpEx
−$101.6K −$1.06/SF
NOI
$575.9K $6.02/SF
Area
Oakland County, MI
Vacancy
3.70%
Lease Rate
$7.35 /SF/Yr
Expense Ratio
15.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$11,517,440
Cap Rate 7%
$8,226,743
Cap Rate 9%
$6,398,578
Alternative Uses
Best Use
Warehouse
$8.23M
$7.20M – $9.60M
NOI $575,872 @ 7.0% cap · market cap 8.23%
Second Best
Industrial
$6.77M
$5.93M – $7.90M
NOI $474,248 @ 7.0% cap · market cap 6.77%
Theoretical Best
Specialty Retail
$20.65M
$18.06M – $24.09M
NOI $1,445,189 @ 7.0% cap · market cap 20.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,475
Businesses Nearby
Explore this area
Business Placement
Demographics for 48220, MI
21,564
Population
12,003
Households
1.8
Avg Household Size
37
Median Age
53%
College-Educated
96%
High-School Grad
4.4 sq mi
ZIP Area
4,901
Density / Sq Mi
$86,095
Median Household Income
$54,557
Median Earnings
$1,191
Median Rent
$229,700
Median Home Value
Market
Vacancy Rate% for Industrial in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Fully occupied headquarters and production campus supporting refrigerated food manufacturing and distribution operations.
Where is this manufacturing property located?
The property is located at 1220 E 9 Mile Road Ferndale, MI.
What is the asking price?
The asking price for this property is $7,000,000.
What are key features of this property?
This property features: 95,718‑square‑foot campus comprising six buildings; 100% occupied by Garden Fresh Gourmet; Cold or refrigerated production environment across most of the footprint
